IMPAX Reports SEC Actions

HAYWARD, Calif.--(BUSINESS WIRE)--May 1, 2007 - IMPAX Laboratories,
Inc. (OTC: IPXL) ("IMPAX" or "the Company") reported that on April
30, 2007, an Administrative Law Judge ("ALJ") of the Securities and
Exchange Commission ("Commission") issued an initial decision that,
if upheld by the Commission itself, would result in the revocation
of the registration of the Company's common stock under section 12
of the Securities Exchange Act of 1934. The Company will file a
timely appeal to the Commission and hopes to persuade the
Commission, based upon the evidence developed in a two-day hearing
in February before the ALJ, that revocation or suspension of such
registration is neither necessary nor appropriate for the
protection of investors. The ALJ's decision will not be effective
during the pendency of the appeal.

The ALJ's initial decision is based upon the Company's failure
to file periodic reports since its quarterly report for the period
ended September 30, 2004. As previously announced, the reason for
this reporting delinquency is that the Company has been working to
determine the appropriate accounting treatment for transactions
under its Strategic Alliance Agreement with an affiliate of Teva
Pharmaceutical Industries, Ltd. The Company has now developed an
accounting treatment that it deems appropriate and is awaiting the
concurrence of the Commission's Office of the Chief Accountant
("OCA") in its proposed treatment. Although it cannot predict when
the OCA will reach a conclusion, the Company currently estimates
that it will be in a position to file all of its delinquent reports
within two to three months following a favorable determination by
the OCA.

The Company also reported that its available cash and
investments at March 31, 2007 was approximately $46.6 million,
compared with $29.1 million at December 31, 2006. The Company
continues to actively develop, manufacture and ship pharmaceutical
products and received nine FDA approvals during 2006.

About IMPAX Laboratories, Inc.

IMPAX Laboratories, Inc. is a technology based specialty
pharmaceutical company applying its formulation expertise and drug
delivery technology to the development of controlled-release and
specialty generics in addition to the development of branded
products. IMPAX markets its generic products through its Global
Pharmaceuticals division and markets its branded products through
the IMPAX Pharmaceuticals division. Additionally, where
strategically appropriate, IMPAX has developed marketing
partnerships to fully leverage its technology platform. IMPAX
Laboratories is headquartered in Hayward, California, and has a
full range of capabilities in its Hayward and Philadelphia
facilities. For more information, please visit the Company's Web
site at: www.impaxlabs.com.

To the extent any statements made in this news release contain
information that is not historical, these statements are
forward-looking in nature and express the beliefs and expectations
of management. Such statements are based on current expectations
and involve a number of known and unknown risks and uncertainties
that could cause IMPAX's future results, performance or
achievements to differ significantly from the results, performance
or achievements expressed or implied by such forward-looking
statements. Such risks and uncertainties include, but are not
limited to, possible adverse effects resulting from the delisting
of and suspension of trading in IMPAX's stock, the SEC proceeding
to determine whether to suspend or revoke the registration of
IMPAX's securities under section 12 of the Securities Exchange Act,
IMPAX's delay in filing its 2004 Form 10-K, its Form 10-Q for each
of the first three quarters of 2005, its Form 10-K for 2005, and
its Form 10-Q for each of the first three quarters of 2006, IMPAX's
ability to obtain sufficient capital to fund its operations, the
difficulty of predicting FDA filings and approvals, consumer
acceptance and demand for new pharmaceutical products, the impact
of competitive products and pricing, IMPAX's ability to
successfully develop and commercialize pharmaceutical products,
IMPAX's reliance on key strategic alliances, the uncertainty of
patent litigation, the availability of raw materials, the
regulatory environment, dependence on patent and other protection
for innovative products, exposure to product liability claims,
fluctuations in operating results and other risks detailed from
time to time in IMPAX's filings with the Securities and Exchange
Commission. Forward-looking statements speak only as to the date on
which they are made, and IMPAX undertakes no obligation to update
publicly or revise any forward-looking statement, regardless of
whether new information becomes available, future developments
occur or otherwise.